Deduce the firm-s short-run supply equation
In a competitive industry, the short-run average variable cost (AVC) of a firm is:
AVC = 600 - 20Q - 0.5Q2
a. Derive the firm's short-run supply equation
b. Determine the minimum possible price (shut-down price) for the firm.
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Deduce the firm's short-run supply equation. Find out the minimum possible price (shut-down price) for firm.
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